Sept 12 Reuters United Parcel Service39;s new fiveyear deal with Teamstersrepresented workers will cost less than the 30 billion that was outlined by the union, the delivery firm39;s chief financial officer said on Tuesday.

The contract covers about 340,000 UPS workers in the United States and will increase wage and benefit costs at a 3.3 compound annual growth rate over the life of the agreement.

Our math was certainly lower than 30 billion, Chief Financial Officer Brian Newman told Reuters, reiterating what Chief Executive Officer Carol Tome said in a CNBC interview published earlier on Tuesday. Both declined to attach a dollar value to the new contract.

When the agreement expires in August 2028, the average UPS fulltime driver will make about 170,000 annually in pay and benefits. Parttime union employees will be earning 25.75 per hour while receiving full healthcare and pension benefits.

The company, which has the top pay in its industry, said 46 of wage and benefit costs from the agreement would be booked this year.

While contractrelated costs in the second half of 2023 are expected to be about 500 million more than UPS expected, the effect from the entire contract is right in line with company assumptions, Newman said.

Last month, the Atlantabased company cut its fullyear revenue and profitability targets, citing higherthanexpected labor costs as well as business lost during the tumultuous contract talks with the International Brotherhood of Teamsters….